GulfMark sees “early signs of encouragement”

Written by Nick Blenkey
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JULY 27, 2016 — Houston headquartered GulfMark Offshore, Inc. (NYSE:GLF) has reported results of operations for the three- and six-month periods ended June 30, 2016.

For the quarter, revenue was $30.5 million, and net loss was $47.6 million, or $1.90 per diluted share. The results included gains and costs totaling $33.3 million or $1.33 per diluted share. Quarterly loss excluding these items was $14.3 million or $0.57 per diluted share.

President and CEO Quintin Kneen commented, “We are pleased to report on our ability to continually improve the company. We improved the balance sheet through debt repurchases that averaged less than half of par value. We continue to improve the average fleet age and capability through the delivery of a new state-of-the-art vessel in the Americas, the sale of an older vessel in the North Sea and the sale of two of our older vessels in Southeast Asia in July. Through our persistent cost focus, we reduced direct operating expenses for each of the last seven quarters. Importantly we reduced these costs during the second quarter while increasing utilization, and we anticipate this trend to continue.   

“In the broader market, we are seeing signs that the industry is withdrawing capacity to such a degree that certain geographic markets are beginning to show signs of balance. In particular, the North Sea PSV market has seen the average spot day rate for the second quarter increase by more than 150% over the same period last year. Also, for the first time since the second quarter of 2014, we sequentially increased our consolidated average quarterly utilization. That increase was 3 percentage points. Overall we are seeing early signs of encouragement, however leading edge day rates and utilization are still well below sustainable levels for the industry.”


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